Race Eco Chain and Ganesha Ecosphere to Partner for Major PET Recycling JV

Race Eco Chain Ltd has announced a joint venture with Ganesha Ecosphere Limited, the largest PET recycler in India. The new entity, named Ganesha Recycling Chain Private Limited, aims to revolutionise PET recycling in India. Race Eco Chain Ltd stated that the board has given initial approval for the joint venture, though the final agreement is still to be completed.

The collaboration is set to establish multiple washing lines across India to convert PET bottles into reusable flakes. Race Eco Chain will hold a 51% equity stake, while Ganesha Ecosphere will hold 49%. The new company will become a subsidiary of Race Eco Chain Limited. This venture aims to significantly reduce plastic waste and promote a circular economy by producing high-quality PET flakes.

This initiative aligns with India’s rising demand for recycled PET (rPET), driven by Environmental, Social, and Governance (ESG) requirements and regulatory mandates. The Indian government mandates that packaging contain 30% recycled plastic by 2025-2026, increasing to 60% by 2028-2029. The venture is expected to address the growing demand for rPET, which is projected to exceed 1 million tons by 2031.

The company also stated that in addition to environmental benefits, this joint venture will create employment opportunities in the recycling sector, contributing to both environmental protection and economic growth. The partnership responds to the increasing need for compliance with ESG and Extended Producer Responsibility (EPR) regulations.

Commenting on this development, the management of RACE Eco Chain Ltd stated, “This joint venture marks a significant forward integration of RACE business, positioning RACE for higher-margin opportunities. We are confident that leveraging Ganesha Ecosphere’s extensive resources and industry expertise will enable us to achieve both our economic and environmental objectives, driving sustainable growth for the future.”

Race Eco Chain is committed to reducing the carbon footprint of plastic waste through advanced technologies and comprehensive waste management solutions. Recently, Race Eco Chain partnered with Zepto (Kiranakart Technologies) to enhance post-consumer waste collection from households. This collaboration ensures efficient collection and traceability of PET bottles through Zepto’s delivery network. Race Eco Chain focuses on leveraging technology to optimise the waste supply chain and support its strong ESG commitments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.